Tough Leaf is an innovative platform launched in October 2020 to transform how minority-owned businesses participate in the construction and development industry. By bridging a critical gap between developers and small, diverse, underrepresented construction firms, the platform addresses long-standing disparities in access to housing-related contracts and wealth-building opportunities.
At the core of Tough Leaf’s approach is a sophisticated, data-driven matchmaking system that leverages over 1,000 data sources to create detailed profiles of minority-owned businesses. This system enables developers to more easily identify qualified, competitive firms that match their project needs. In turn, it allows minority-owned businesses to gain visibility and access to larger-scale opportunities, from which they might otherwise be excluded.
Beyond simple matchmaking, Tough Leaf offers a robust set of support services designed to build the capacity of minority-owned businesses. This includes access to essential resources like insurance, bonding, financing options, payroll solutions, and back-office support, to build their business capacity. By offering these tools, Tough Leaf addresses significant barriers that often prevent smaller firms from scaling up and competing for high-value contracts. Tough Leaf also provides developers with data on government tax credits and subsidies tied to minority participation in projects, making contracts more financially attractive for developers and businesses.
To further enhance its impact, Tough Leaf has several initiatives underway. These include development of advanced machine learning models for better matchmaking, establishing localized market hubs to address regional needs, and expanded financial literacy and business development training programs. They are also exploring partnerships with financial institutions to provide targeted loans, grants, and low-interest financing options for minority-owned firms.
Through this multi-faceted approach, Tough Leaf is reshaping the construction and development industry by facilitating connections that would otherwise not exist. By enabling developers and minority-owned businesses to collaborate, the platform opens new pathways for wealth-building for Black business owners and their families, contributing to the long-term goal of closing the racial wealth gap.
Valuing Homes in Black Communities
Homes in Black majority neighborhoods are undervalued by 23% on average compared to similar homes in other neighborhoods. Structural innovations that redesign our markets could create a more equitable housing market. To support new ideas, Economic Architecture and Brookings are mapping innovations across the US and invite innovators to step forward and apply to the Valuing Homes in Black Communities Challenge.